Every year, the ACSA Member Assistance and Legal Support Team serves approximately 800 members. Last year, 51 of those members needed assistance as a result of being the subject of a formal investigation, which often results in the member being placed on paid administrative leave. Assembly Bill 2101 was recently signed by Gov. Gavin Newsom, and one of the changes in statute that has the potential to benefit our members is a change in the definition of “leave of absence.”

By way of background, existing law creates the Teachers’ Retirement Fund, which is continuously appropriated for specified purposes and into which employee contributions are deposited. Existing law requires employees to make contributions to the system based on their creditable compensation. Existing law defines “leave of absence” for purposes of the Teachers’ Retirement Law as a period of leave to which a member is entitled that is expressly authorized or required pursuant to specified provisions. Among other things, these provisions provide for leaves of absence for military service, service as an elected member of the Legislature, and service on certain boards and commissions, subject to specified requirements.

This bill now defines “leave of absence” to also mean an employer-approved compensated leave taken on or after Jan. 1, 2016 that is otherwise excluded from the definition of leave of absence described above. The bill would require that remuneration that is paid for an employer-approved compensated leave be creditable compensation as specified. Based on the increase in creditable compensation, the bill would increase employee contributions into continuously appropriated Teachers’ Retirement Fund, thereby making an appropriation. In essence, if you were placed on a compensated “leave of absence” on or after Jan. 1, 2016, you may be eligible for increased service credit which will increase your final compensation at the time of your retirement.

By way of example, some members may have been denied STRS credit for time that they were on paid administrative leave because of a complaint that was filed against them, and the member was forced to be on paid administrative leave while the investigation was ongoing. Another example may have been a member who was denied STRS credit if the paid leave was part of a settlement agreement. Both of these examples would be classified as a required leave as noted above.

Another change in statute as a result of AB 2101 pertains to what is commonly referred to as the “golden handshake.” Existing law authorizes an employer, for purposes of STRS, to offer an additional two years of service credit to specified members if the member elects to retire in a defined period. Existing law requires a member to forfeit the additional two years of service credit if the retired member takes any job within the school district, community college district, or county office of education that granted the member the service credit less than five years after receiving the additional credit.

This bill would require a member to forfeit the additional two years of service credit if the member takes any job within the school district, community college district, or county office of education as an employee, an independent contractor, or an employee of a third party.

In addition to helping members work through a variety of issues on a daily basis, the seven ACSA Advocates who make up the Member Assistance and Legal Support Team also make every effort to stay abreast of new legislation and court rulings in order to better serve ACSA members.

If you need to contact an ACSA Member Assistance and Legal Support Team Advocate, call 1-800-608-2272 and ask for Joanne Godfrey or make the request online at www.acsa.org/legalsupport.

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